Loss Aversion in the Laboratory

We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion protocol (Holt and Laury, 2002). In our experiment, participants earn and retain money for a week before using it in an incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on behavior resulting in participants requiring higher compensation to bear risk.

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Year of publication:	2014-07
Authors:	Morrison, William G. ; Oxoby, Robert J.
Institutions:	Institute for the Study of Labor (IZA)
Subject:	risk aversion \| loss aversion \| experiments

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 8309 13 pages
Classification:	C91 - Laboratory, Individual Behavior ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010884160